Tongaat expects earnings to rise after sugar operations rebound
By Andries Mahlangu - May 19th 2017, 13:02
Tongaat Hulett expects its full-year headline earnings to rise by up to 45%, helped by the rebound in the performance of its sugar operations, which compensated for a weak performance in the starch operations and the land management and development arm.
The sugar producer, which has operations in neighbouring countries, including Zimbabwe, Mozambique, and Swaziland, said on Friday that headline earnings in the year to end-March would rise to about R982m from R679m in the year-earlier period.
The various sugar operations realised R1.27bn in operating profit, staging a turnaround from a loss of R15m in the previous period and reflecting high sugar prices and effective import duties in the jurisdictions in which the company operates.
Sugar production crept to 1.056-million tonnes, from 1.023-million tonnes, as the drought in Kwazulu-Natal and poor growing conditions in Zimbabwe and Mozambique affected volumes.
Operating profit in the start and glucose operation dropped to R510m, from R658m, as a result of high maize costs that resulted from the drought.
Tongaat also generates income from land conversion and development activities. In this regard, operating profit dropped to R641m from R1.11bn.
The share price has dropped 13% to R113.60 on the JSE so far in 2017, valuing the company R15.8bn. © BusinessLIVE MMXVII
Steinhoff pins hope on Moelis and AlixPartners
11/12/2017 - 09:29
Steinhoff International attempted to staunch the bleeding by appointing US investment bank Moelis & Company and management consultants AlixPartners on Sunday.
Pep and Ackermans give Star a boost
04/12/2017 - 10:32
Star, the JSE-listed holding company of Pep, Ackerman and other retailers unbundled from Steinhoff on September 20, released its first financial results as a standalone group on Monday morning.
Trade report delay of Distell shares hints at high premium
20/11/2017 - 10:45
It is still not clear why the parties involved in the R10bn trade in Distell shares waited six months to report the trade to the JSE as required by the exchange’s rules.
Spar to rotate external auditors
16/11/2017 - 11:41
The Spar Group is the second JSE-listed company to move to comply with the new requirement of the Independent Regulatory Board for Auditors (Irba) that external auditors be rotated every 10 years. Mandatory audit firm rotation will come into force in 2023.
Shares in Mr Price benefit from upbeat announcement
07/11/2017 - 10:21
Retail group Mr Price’s share price jumped 11% to R169.99 on Tuesday morning after it said interim earnings grew by up to 25%.